Preliminary research of Fairfield Market Research indicates a promising growth outlook for global polyvinyl chloride market during the course of next few years.
Polyvinyl Chloride Market Awaits Robust Growth as Application Range Continues to Expand
Construction, automotive, electrical, electronic, and packaging industries are all expanding swiftly, which has benefited the worldwide polyvinyl chloride (PVC) industry. Using unplasticized PVC rather than wood in window frames and sills will expand during the forecast period, raising the demand for PVC in the construction sector. Additionally, PVC is used for specific packaging jobs such as the sleeving of bottles, consumer electronics and other commodities, and medical apparatus and equipment packaging. The expanding packaging industry, which mostly employs plastics, is anticipated to be a major driver of the global polyvinyl chloride market growth. The National Bureau of Statistics of China estimates that in 2020, the Chinese construction industry added about CNY 7.3 trillion to the national economy. Similarly, according to the US Census Bureau, the total value of residential dwellings in April 2020–April 2021 increased by 21.8% to USD 217,30 million for FY 2019–2020 from US$178.3 Bn. Throughout the projected period, this tendency is anticipated to persist. Rigid polyvinyl chloride creates pipelines, doors, and window frames. There will always be a need for fundamental chemical products since urbanization, and population development has raised disposable incomes and increased building spending.
However, there are exciting growth opportunities due to the development of renewable PVC, the expansion of renewable energy, the use of highly efficient pumps, the rising demand for electric vehicles, the expanding market for wood-plastic composites, and the untapped potential in emerging nations. The expansion of the polyvinyl chloride market is predicted to be constrained by a variety of obstacles and constraints. The use of PVC in the construction of green buildings is prohibited, and steel and concrete pipes will likely compete fiercely, limiting the market growth. The economic downturn has negatively impacted the construction and automobile industries in the United States, and Canada. This might also prevent the overall expansion of the market.
Polyvinyl Chloride Market: COVID-19 Impact
As a result of workplace closures, supply chain disruptions, and transportation limitations brought on by COVID-19, many manufacturing industries were impacted in the years 2020–2021. Lockdown was imposed in this situation by several nations, including Brazil, China, India, and many others, which caused the closure of production and manufacturing facilities. This pandemic significantly negatively influenced construction, electrical, electronics, automotive, and other related industries. The pandemic also delayed the rollout of 5G, which was expected to be a key driver of the expansion of the entire electronics business. During this time, the supply chains of various manufacturing facilities were negatively impacted, which resulted in a significant decline in revenues and earnings. However, a large increase in imports and export is anticipated due to the ongoing relaxations. These forced lockdowns are starting to be lifted by the appropriate governing bodies, which is encouraging for the polyvinyl chloride market.
Growing Demand from Building and Construction Industry Will Drive Polyvinyl Chloride Market
PVC is robust, lightweight, resistant to rotting, chemical corrosion, and abrasion, adaptable, and simple because it can be cut, bent, welded, and linked in any design. Due to these qualities, it is perfect for various uses, including pipelines, windows, flooring, and roofing. PVC flooring has advantages: durability, independence from aesthetic effects, ease of installation, cleaning, and recyclability. PVC flooring has so been utilized over time. In the building and construction sector, PVC is also utilized for roofing. It is utilized because it requires little care and is durable (more than 30 years). The main driver in Asia-Pacific, the Middle East, and North America is the rising number of infrastructure construction projects. China accounts for 20% of all construction investments, making it the world's largest construction market. The National Bureau of Statistics of China estimates that the value added produced by the Chinese construction sector in 2020 was around CNY 7.3 trillion. The construction industry is one of the biggest in the world in the United States. The polyvinyl chloride market was impacted by COVID-19, which caused a reduction in residential construction in 2020. These factors are anticipated to moderately expand the market during the forecast period.
Increased Technical Developments Will Promote Polyvinyl Chloride Market Growth
The value of the polyvinyl chloride market is continuing to increase due to ongoing developments in manufacturing technologies. The market will continue to have a promising future because of expanding roofing materials utilized to preserve the efficiency of machines and rising technological improvements designed to reduce manufacturing waste and costs. In many countries, PVC is replacing traditional building materials, including clay, wood, and concrete. The newest technology of 3D printing uses the market for injecting, printing, and molding structures for speedy building since it can be readily shaped, molded, colored, and processed according to the user's needs, making it the most necessary plastic in the market. PVC is very inexpensive to assemble compared to other materials.
Fluctuating Prices, and Rising Health Concerns to Limit Polyvinyl Chloride Market Growth
The market's expansion is seriously threatened by fluctuations or volatility in raw materials and machinery costs. Likewise, market expansion is harmed by the inconsistent supply of raw materials in one specific place. The availability of alternatives in an affordable price range will further slow down the polyvinyl chloride market growth rate. Additionally, the market's long-term growth rate would be hampered by an increasing number of health-related risks brought on by PVC. Moreover, the industry will face obstacles to expansion due to the escalating environmental issues surrounding carbon emissions and global warming.
Construction Category Dominated Polyvinyl Chloride Market Attributable to Expanding Demand for Better Organisational Amenities
The construction category held the largest polyvinyl chloride market share, and it is anticipated that it will continue to rule the market during the forecast period. The characteristics are attributable to the expanding demand for better organizational amenities by accelerating industrial development and growing development boost segmental demand. The most significant end-use market for polyvinyl chloride is construction. It is anticipated that the construction industry's sector will grow steadily. Due to its low manufacturing rate, comfort from being lightweight, and processing, it is a very common substantial work in the building sector. PVC is beneficial in various end-use sectors because of its suitable chemical, physical, and mechanical properties. It is highly regarded for its enormous ductile strength for alternative building projects.
Pipes and Fittings Category Dominates Polyvinyl Chloride Market Based on Greater Durability
The pipes & fittings category dominated the polyvinyl chloride market in 2021. Due to its high endurance, durability, and cost-competitiveness, PVC pipes continue to be in high demand in the pipes and fittings application category. Modern infrastructure projects use polyvinyl chloride for several piping applications, including the transportation of drinking water, trash drainage, and water drainage from roofs and the ground. For a long time, PVC pipes have been used to transport hazardous chemicals due to their excellent corrosion resistance. Manufacturers highly favor PVC because of its low maintenance requirements, favorable economic conditions, and safety considerations.
Asia Pacific to Dominate Polyvinyl Chloride Market with Increasing Use in Electronics Industry
Over the forecast period, it is anticipated that the Asia Pacific polyvinyl chloride market will account for the largest revenue share. The largest base for electronic manufacturing is in China. It presents the current upstream producers, including South Korea, Singapore, and Taiwan, with fierce rivalry. Consumer electronics saw the fastest rise in goods, including smartphones, OLED TVs, and tablets. One of the industries in China that is expanding the fastest is the medical device industry. There aren't many private hospitals in the nation, and large public hospitals purchase the majority of healthcare supplies, which has increased the use of medical equipment in public hospitals. These elements influenced the sector's demand for polyvinyl chloride. The cost of healthcare in 2020 was CNY 7.2 trillion, or 7.1% of the nation's GDP. Furthermore, due to an increase in hospitals and the demand for medical care, the medical device industry in China has experienced rapid expansion. To encourage domestic electronics manufacturing and exports, the Indian government is implementing several steps. For instance, India exported electronic items worth USD 11.7 billion in FY 2021. Exports of electronic goods were worth USD 950.17 million in May 2021. Over the projected period, the country's increase in electronic product sales will likely drive the demand up in the electronics sector.
North America’s polyvinyl chloride market is anticipated to experience stable revenue growth throughout the forecast period due to increased business operations and low and high levels of investment in the industrial sector. The building industry has had recent years of tremendous expansion in this area. The region's plastics industry is also expanding somewhat. Additionally, the market growth is attributed to the United States’ rising healthcare investment. The Centers for Medicare & Medicaid Services estimates that by 2028, healthcare spending in the US will total US$6.2 Tn and make up more than 20% of the GDP. These elements will increase the manufacture of polyvinyl chloride for use in disposable medical devices like flexible tubing. Due to its use in car underbody coatings, sealants, and other applications, the demand for resin will also increase when auto vehicle production picks up in US factories.
Global Polyvinyl Chloride Market: Competitive Landscape
In January 2021, Shintech Inc., its US subsidiary, will be able to produce more goods thanks to a capital investment of USD 1.25 billion that will be made to strengthen its integrated PVC business, Shin-Etsu Chemical Co. Ltd. 3.62 million metric tonnes of PVC are anticipated to be produced annually by Shintech. Similarly, in July 2020, to create PVC recycling, KEM ONE teamed together with Polyloop. Through this collaboration, innovative PVC recycling solutions will be developed at the Balan site using the expertise and talents of both parties.
A few of the players in the polyvinyl chloride market Formosa Plastics Corporation, Chinyang Chemical Co. Ltd., BASF SE, Arkema S.A., Ineos Chlorvinyls Ltd., Saudi Plastic Products Company Ltd., Occidental Petroleum Corporation, Premier Polyfilm Ltd., and The Chemical Company.
Global Polyvinyl Chloride Market is Segmented as Below:
By End Use
Global Polyvinyl Chloride Market, By Region
Key Elements Included In The Study: Global Polyvinyl Chloride Market
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